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Bakken Industries Inc. is undertaking a 50-year project that requires an initial investment of $100 million. The project provides $0 cash inflow for the first
Bakken Industries Inc. is undertaking a 50-year project that requires an initial investment of $100 million. The project provides $0 cash inflow for the first ten years, an annual cash inflow of $23 million from Year 11 through Year 20, and an annual cash inflow of $36 million during the subsequent 30 years. If the firm's required refurn for this project is 10.20%, what is the equivalent annual cost (EAC) of the project? A. $136,771 B. $91,966 C. $85,221 b. $105.221 E. $112,896
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